PIF agreed to commit $20 billion to the pool, and Blackstone plans to raise the same amount from other investors, the New York-based asset manager said in a statementSaturday. With leverage, Blackstone expects to have more than $100 billion in purchasing power for infrastructure projects, primarily in the U.S.
The agreement between Blackstone and PIF is a non-binding memorandum of understanding, and the organizations are continuing to negotiate terms, they said.
The partnership comes as top executives, including Blackstone Chief Executive Officer Steve Schwarzman and KKR & Co. co-CEO Henry Kravis, descend on Riyadh for the inaugural Saudi-U.S. CEO Forum, a weekend of dealmaking. The meetings, which have already yielded billions of dollars in deals between companies including oil giant Saudi Aramco and General Electric Co., are taking place as U.S. President Donald Trump visitsthe kingdom.